What could affect the price of IOTA?
IOTA's price is caught between improvements in its technology and challenges in the market.
- Token Unlocks & Inflation – New tokens are created at about 6% per year, plus regular token releases until 2027, which could lead to more selling pressure.
- Institutional Adoption – Partnerships like the TWIN Foundation and new investment products help increase IOTA’s real-world use.
- Staking Demand – Binance offers up to 29.9% annual returns for locking IOTA, encouraging holders to keep their tokens.
- Technical Weakness – Indicators like MACD and RSI suggest the price momentum is weak.
Deep Dive
1. Tokenomics & Supply Dynamics (Bearish Impact)
Overview:
IOTA’s supply grows daily by minting about 767,000 new tokens (around 6% inflation per year). Additionally, large amounts of tokens will be unlocked gradually until 2027. Although some tokens are burned through transaction fees, network activity remains low, with daily trading volume at $20.7 million compared to a market cap of $605 million.
What this means:
If the supply keeps increasing without enough demand, prices could fall. For example, after a major upgrade in May 2025, IOTA’s price dropped 41% despite incentives for staking (CoinMarketCap).
2. Real-World Adoption Catalysts (Bullish Impact)
Overview:
- Trade Infrastructure: The TWIN Foundation, supported by the World Economic Forum, is working to digitize trade between Africa and the UK (Crypto.News).
- Compliance Tools: IOTA’s integration with Lukka provides institutional-level anti-money laundering (AML) and know-your-customer (KYC) compliance, important for tokenizing real-world assets.
- ETP Listings: Valour’s exchange-traded products (ETPs) on Sweden’s Spotlight Market make it easier for investors to access IOTA.
What this means:
These developments could attract institutional investors and boost confidence. Successful pilot projects, like tracking exports in Kenya, show IOTA’s potential in Internet of Things (IoT) applications, which may bring long-term investment.
3. Staking & Exchange Incentives (Mixed Impact)
Overview:
Binance offers staking products with annual returns between 16.9% and 29.9% for locked IOTA until December 2025. This reduces the number of tokens available for trading, but since 30-60% of staked tokens unlock every month, there’s a risk of selling if returns decline.
What this means:
While staking may support prices in the short term, long-term gains depend on keeping stakers engaged after the promotion ends. Currently, only about 13.47% of IOTA tokens are staked (DefiLlama).
Conclusion
IOTA’s price will depend on how well it balances increasing token supply with growing real-world use. Watch the $0.145 support level closely — if it breaks, prices could fall back to 2024 lows around $0.09. On the upside, successful adoption could push prices toward $0.22, a key technical level. Will IOTA’s trade partnerships be enough to overcome its technical challenges? Keep an eye on the TWIN Foundation’s progress in late 2025.
What are people saying about IOTA?
The IOTA community is debating whether recent upgrades will drive wider adoption or if price challenges will continue. Here’s what’s trending:
- Traders are watching for a breakout above $0.17 after an 8% gain in one day
- The Rebased upgrade is helping DeFi grow, but developer activity is slower than expected
- New validators like Klever are improving network decentralization
- A governance vote is underway to secure over $5 million for expanding the IOTA ecosystem
Deep Dive
1. @CryptoSignalsPro: Bullish setup above $0.208 support
“IOTA holds 0.2080 zone – TP targets 0.2150 if momentum holds”
– @CryptoSignalsPro (89k followers · 12k impressions · 2025-08-17 04:29 UTC)
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What this means: This is a positive sign for IOTA. The price is holding steady near an important support level ($0.208). If it breaks above $0.213 and stays there, it could lead to short-term gains.
2. @klever_org: Joins as IOTA validator
“Building bridges, not silos”
– @klever_org (312k followers · 18k impressions · 2025-08-19 12:01 UTC)
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What this means: This is somewhat positive. Klever joining as a validator helps secure the network and makes it more decentralized. However, since Klever focuses on multiple blockchains, it might spread its development efforts thin, which could slow down IOTA-specific improvements.
3. @iota: Tangle DAO funding vote
“Go all-in on IOTA infrastructure with $5M+ proposal”
– @iota (689k followers · 23k impressions · 2025-08-20 14:00 UTC)
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What this means: If approved, this funding would support building new tools and services for the IOTA ecosystem, which is a positive development. Some critics, however, believe the money should be spent more on marketing to attract users rather than just on technology.
4. CoinJournal: Rebased adoption concerns
“Transactions fell 86% post-upgrade despite 13% staking yields”
– CoinJournal (Verified publisher · 2025-06-25)
What this means: This is a warning sign. Even though many IOTA holders are earning staking rewards (with 45% of the supply locked), the number of transactions on the network has dropped significantly. This raises questions about whether the network’s growth is sustainable.
Conclusion
The outlook for IOTA is mixed. On one hand, technical indicators and new validators suggest positive momentum. On the other hand, adoption metrics like active users and transactions are stagnant or declining. The Rebased upgrade has helped DeFi activity reach $36 million in total value locked (TVL), but active addresses have dropped by 50% since July 2025, which is concerning. Keep an eye on the $0.172 support level—if the price closes below this on a daily basis, it could invalidate the bullish pattern that some analysts are watching.
What is the latest news about IOTA?
IOTA is making moves with exchange partnerships and real-world asset projects despite some market challenges. Here’s a quick summary of the latest developments:
- Binance Locked Products Launch (October 1, 2025) – You can now stake IOTA on Binance with returns up to 29.9% APR through their updated program.
- Swedish ETP Listing (September 24, 2025) – Valour listed IOTA on Sweden’s Spotlight Stock Market, giving European investors a regulated way to invest.
- Critical Minerals DeFi Platform (September 10, 2025) – Salus is using IOTA’s network to tokenize $500 billion worth of mineral trade.
In-Depth Look
1. Binance Locked Products Launch (October 1, 2025)
What happened:
Binance updated its Simple Earn Locked Products to include IOTA. This means you can lock your IOTA tokens for 120 days and earn a fixed interest rate as high as 29.9% APR. This offer runs through December 2025 and is aimed at people who want to hold their tokens longer term.
Why it matters:
This is a positive sign for IOTA because it encourages holders to keep their tokens instead of selling, which can help stabilize the price. It also shows Binance’s confidence in IOTA. However, there is a 48 to 72-hour waiting period to unlock your tokens, which might limit quick access to your funds. (Binance)
2. Swedish ETP Listing (September 24, 2025)
What happened:
Valour added IOTA to its list of 13 new Exchange-Traded Products (ETPs) on Sweden’s Spotlight Stock Market. This allows investors in Nordic countries to buy IOTA through a regulated platform with a management fee of 1.9%.
Why it matters:
This expands access to IOTA for institutional and retail investors in Europe, which is generally a good sign. However, IOTA’s daily trading volume ($4.47 million as of October 1) is still low compared to competitors like Optimism. This raises questions about how strong the demand will be over time. (Yahoo Finance)
3. Critical Minerals DeFi Platform (September 10, 2025)
What happened:
Salus launched a decentralized finance (DeFi) platform on IOTA’s network to tokenize critical minerals exports, such as tantalum from Rwanda. This project targets a $2.5 trillion financing gap in the minerals sector.
Why it matters:
This is a promising long-term development because it fits with IOTA’s goal of connecting blockchain technology to real-world assets and trade finance. However, adoption indicators like wallet growth have been flat, suggesting more work is needed to gain traction. (Crypto.news)
Conclusion
IOTA is strengthening its position through partnerships with Binance and Valour and by focusing on real-world asset projects like Salus. Still, challenges remain, including limited developer activity and competition from newer blockchain platforms like Sui. The big question is whether IOTA’s focus on real-world assets in 2025 will help overcome these hurdles and technical challenges.
What is expected in the development of IOTA?
IOTA is making progress with these key developments:
- TWIN Foundation UK Pilot (Q4 2025) – Launching a blockchain-based trade solution for poultry imports in the UK.
- Mainnet Node v1.5 Upgrade (Q1 2026) – Improving scalability and privacy features.
- Business Innovation Program Expansion (2026) – Offering grants focused on the Middle East and Asia.
- RWA Tokenization Protocols (Q2 2026) – Tools for digitizing real-world assets like commodities and carbon credits.
Deep Dive
1. TWIN Foundation UK Pilot (Q4 2025)
Overview: The TWIN Foundation, working with the UK Cabinet Office and the Institute of Global Commerce, will test a blockchain-based system to simplify poultry imports from the EU. This system uses IOTA’s technology for secure digital identities and product tracking to speed up customs and reduce fraud (IOTA Foundation).
What this means: This is a positive step for IOTA because if the pilot succeeds, it could become a standard for government trade digitization, linking its technology directly to real-world economic activity. Challenges include possible regulatory delays and compatibility issues with existing systems.
2. Mainnet Node v1.5 Upgrade (Q1 2026)
Overview: After the v1.4.1 update in August 2025, which increased the number of validators and improved transaction speed, the v1.5 upgrade will introduce dynamic sharding. This allows the network to process many transactions at once and adds privacy features using zero-knowledge proofs (IOTA GitHub).
What this means: This upgrade could make IOTA more attractive for businesses by boosting speed and privacy. However, implementing these complex features carries some risk, especially since IOTA uses a unique network structure called a Directed Acyclic Graph (DAG).
3. Business Innovation Program Expansion (2026)
Overview: IOTA plans to invest over $5 million in grants to support projects in the Middle East and Southeast Asia. This builds on partnerships formed during Malaysia Blockchain Week in 2025, focusing on areas like Islamic finance and supply chain tokenization (IOTA Blog).
What this means: Expanding into new regions is good for IOTA’s growth and could lead to new use cases beyond Europe. Success depends on working well with local regulators and attracting developers.
4. RWA Tokenization Protocols (Q2 2026)
Overview: Following its partnership with Lukka in July 2025, IOTA will launch tools to help tokenize real-world assets such as commodities, invoices, and carbon credits. These tools comply with European MiCA regulations and support fractional ownership, making it easier for institutions to invest (Lukka Partnership).
What this means: This development could open up new opportunities for institutional investors, which is positive for IOTA. However, competition from other blockchain platforms like Ethereum and Polkadot remains a challenge.
Conclusion
IOTA’s roadmap focuses on real-world use cases like trade digitization, regulatory compliance, and expanding into new regions. While technical upgrades aim to strengthen its network, partnerships with governments and businesses will likely drive its value in the medium term. One question to consider is how IOTA’s focus on regulated, institutional applications will affect its commitment to decentralization.
What updates are there in the IOTA code base?
IOTA’s software received important updates in September 2025 that improve its network and developer tools.
- Starfish Consensus (Sept 10, 2025) – A new experimental protocol designed to make the network more resilient during attacks or heavy traffic.
- CLI Enhancements (Sept 10, 2025) – Added new commands for managing IOTA-Names (decentralized IDs) and improved data processing options for nodes.
- Wallet Fixes (Sept 3, 2025) – Fixed bugs related to NFTs and improved compatibility with software development kits (SDKs).
In-Depth Look
1. Starfish Consensus (Sept 10, 2025)
What it is:
This update introduces an experimental way for the network to agree on transactions faster by separating how transaction headers and data are shared. It’s included in the main IOTA software (version 1.6.1) but isn’t active on any live network yet. By handling headers and data separately, the system can process transactions more quickly, even if parts of the network are slow or under attack. Testing is still underway, with plans to try it on test networks soon.
Why it matters:
This is a positive step for IOTA’s future, especially for businesses and Internet of Things (IoT) applications that need fast and reliable data processing. Since it’s still experimental, users won’t see immediate changes, but it sets the stage for better performance down the line.
(Source)
2. CLI Enhancements (Sept 10, 2025)
What it is:
Node operators now have more control over how their nodes process historical data, thanks to customizable settings for the Indexer backfill system. Additionally, new command-line interface (CLI) tools were added for managing IOTA-Names, which are decentralized digital identities stored on the blockchain.
Why it matters:
While most everyday users won’t notice these changes, developers building apps that use digital identities will find it easier to work directly with the network without relying on outside tools. This helps foster a stronger developer ecosystem.
(Source)
3. Wallet Fixes (Sept 3, 2025)
What it is:
The wallet software (version 1.3.0) fixed issues where NFT forms could overflow and cause crashes. It also improved how transaction amounts are read and displayed across different programming environments (Rust and TypeScript SDKs).
Why it matters:
These fixes improve the user experience, especially for those interacting with NFTs on IOTA. Smoother wallet performance reduces frustration and helps encourage wider adoption among everyday users.
(Source)
Conclusion
IOTA’s updates in Q3 2025 focus on preparing the network for higher scalability and refining tools for developers. While no urgent updates are needed for most users, these improvements hint at IOTA’s growing readiness for enterprise and IoT applications. It will be interesting to see how these behind-the-scenes changes help IOTA strengthen its role in connected devices and digital trade.
Why did the price of IOTA fall?
IOTA (IOTA) dropped 2.18% in the last 24 hours, underperforming the overall crypto market, which fell 1.27%. The decline sped up due to weak price trends and mixed news from its ecosystem. Key reasons include:
- Technical breakdown – The price fell below an important support level at $0.15, triggering more selling pressure.
- Ecosystem slowdown – IOTA is losing ground to competitors like Solana and SUI, especially in decentralized finance (DeFi) and developer activity.
- Staking effects – Binance’s high annual percentage rate (APR) lockup offer (up to 29.9%) may have pulled liquidity away temporarily.
Deep Dive
1. Technical Breakdown (Negative Impact)
What happened: IOTA’s price slipped below $0.15, a key support level. This aligns with other technical indicators showing weakness, like the 30-day moving average at $0.1655 and the MACD histogram turning negative. The Relative Strength Index (RSI) is at 41.17, indicating momentum is fading but it’s not yet oversold.
Why it matters: This drop breaks a “double-bottom” pattern that had helped keep prices stable since August. The next major support level, based on Fibonacci retracement, is around $0.13. Traders are expecting the price to possibly fall further. Trading volume is also down 12% compared to the 30-day average, which can increase price swings.
What to watch: If the price closes above $0.155, it could signal a rebound. But if it stays below $0.14, there’s a risk of a sharper sell-off.
2. Ecosystem Slowdown (Negative Impact)
What happened: Despite some new partnerships in Q3, like Salus for mineral tokenization, IOTA’s total value locked (TVL) in DeFi remains low at $9.76 million, which is 73% below its peak in August. The number of daily active users on the network is also under 10,000.
Why it matters: Newer blockchains like Sui and Keeta, which can handle more transactions per second, are attracting more developers. IOTA’s focus on enterprise solutions, such as the TWIN trade platform, hasn’t sparked much interest from everyday users. This makes IOTA more vulnerable when investors are cautious.
3. Staking Incentives (Mixed Impact)
What happened: Binance started offering IOTA Locked Products on October 1, with APRs between 16.9% and 29.9% for lockups of 30 to 120 days. This can reduce the number of coins available for trading but came at a time when many altcoins were seeing outflows.
Why it matters: High staking rewards can sometimes lead to short-term selling as investors adjust their portfolios. Since about 45% of IOTA is already staked, the market might be anticipating some selling when these locked coins become available again.
Conclusion
IOTA’s recent drop is due to technical weaknesses, slow growth in its network, and investors moving money to higher-yield options. While staking rewards might help stabilize prices in the medium term, the lack of strong retail interest means sellers still have the upper hand.
Key point to watch: Will IOTA hold the $0.13 support level, or will continued rotation out of altcoins push prices lower? Keep an eye on Binance staking activity and any new partnerships announced in the fourth quarter.